SEBI relaxes minimum information of related party transaction to be provided to audit committee and shareholders for approval
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations) require related party transactions (RPTs) to be approved by the audit committee and by the shareholders, if material.
Industry Standards Forum (“ISF”) comprising of representatives from ASSOCHAM, CII and FICCI in consultation with SEBI, formulated Industry Standards on “Minimum information to be provided for review of the audit committee and shareholders for approval of a related party transaction.
ISF in consultation with the SEBI, came out with the revised Industry Standards on “Minimum information to be provided to the Audit Committee and Shareholders for approval of Related Party Transactions. SEBI issued Circular dated 26.06.2025 to implement the revised Standards on RPT.
However, ISF submitted a representation to the SEBI, requesting relaxation from the applicability of the RPT Industry Standards.
Accordingly, the SEBI has issued Circular dated 13.102025 to provide that if a transaction with a related party do not exceed 1% of annual consolidated turnover of the listed entity or Rupees Ten Crore, whichever is lower, the listed entity shall provide ‘Minimum information to the Audit Committee for approval of Related Party Transactions’.
- Later SC ruling cannot render an act done in compliance of a court order a statutory default
- Interest payment on mobilisation advance to NHAI not liable to TDS u/s 194A
- Typographical error in turnover accepted during assessment not a mistake apparent from record
- Plea that assessee was not aware of order cannot be brushed aside in absence of proof of service
- Order rejecting stay of income tax demand should recite merits if it is a case for stay or not
